Supreme Court to Decide Fate of Family's Home in Property Dispute

A family from Brandenburg is facing a critical situation as the Federal Court of Justice (Bundesgerichtshof, BGH) prepares to make a ruling on whether they must demolish their home due to an error in a property auction. The case has been ongoing for several years, raising questions about homeowner rights and administrative responsibilities.

The dispute began in 2010 when the couple, referred to as the W. family, purchased a plot of land in Rangsdorf, located south of Berlin, at a foreclosure auction. After constructing their home and moving in with their two children, they were unexpectedly confronted by the original owner of the property, who claimed he had not been notified of the auction and demanded the return of the land.

In a decision made in 2014, the Potsdam Regional Court determined that the local court had made a significant error by failing to adequately search for the rightful owner before proceeding with the auction. Consequently, the auction was declared invalid, and the land was returned to its original owner.

Despite the court's ruling, the W. family contests the claim that the local court acted improperly. They argue that the authorities had conducted a thorough search within their capabilities. Additionally, the family expressed discontent with the fact that their voices were not considered when the auction was annulled.

The original owner subsequently pursued legal action against the W. family, resulting in a June 2023 ruling from the Brandenburg Higher Regional Court. This judgment mandated that the family must vacate their home and demolish it within a year, in addition to erasing a mortgage of EUR280,000 plus interest related to construction costs and compensating the owner approximately EUR6,000 for property use.

In response to this ruling, the W. family filed an appeal, bringing the case before the BGH in Karlsruhe. The deadline for the family to vacate and demolish their house has since been extended. During a recent hearing, the presiding judge indicated that the court would not revisit the validity of the auction, as the lower court's decision is already final. Preliminary assessments suggest the family may have ultimately lost their claim to the property.

However, not all elements of the lower court's decision were upheld by the judges in Karlsruhe. They indicated that the original owner might not be entitled to require the family to demolish their home at their own expense, nor to erase the mortgage. While the family will need to relinquish the property, the conditions under which they must do so remain subject to further discussion.

Furthermore, the question of whether the family is owed compensation from the state of Brandenburg for the damages incurred due to the auction error will likely be addressed following the court's verdict. A spokesperson for the Justice Ministry stated that the government recognizes its responsibility for the financial repercussions arising from the auction mishap and is in ongoing discussions with the family, aiming for an out-of-court settlement.